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Essays On Institutional Ownership And Corporate Finance, Qijian Wang
Essays On Institutional Ownership And Corporate Finance, Qijian Wang
Dissertations, Theses, and Capstone Projects
This dissertation consists of three chapters that span earnings management, innovation, and insider trading.
Chapter 1: Prior literature finds that earnings management is negatively correlated with institutional ownership. The question is whether institutional investors drive down earnings management of the firms they invest in, or they choose firms with lower earnings management. In this paper, I use the regression discontinuity design around Russell 1000 and 2000 indexes reconstruction to obtain an exogenous variation in institutional ownership. I find that institutional investors do not drive down earnings management after they become shareholders. Instead, institutions choose firms with lower earnings management level …